Executive Summary

Q3 2025 marked a transformational quarter post-AGIG acquisition, with preliminary total operating expenses of approximately $3.8M and oil & gas revenue of $0.226M; GAAP net loss was $(7.03)M and diluted EPS $(0.21), driven by integration costs, impairment, and ELOC-related expenses .
Liquidity tightened: cash and cash equivalents were $1.51M, total debt ~$11.0M–$11.5M, and working capital deficit was $(3.79)M at quarter-end .
Strategic execution progressed: closed $8.5M Cedar Port land acquisition, appointed Nexus PMG as engineering partner, engaged Corvus Construction, and advanced project groundwork; secured a $100M ELOC and a $5M senior secured convertible note to fund build-out .
No formal financial guidance or earnings call transcript was provided; Wall Street consensus estimates via S&P Global were unavailable for Q3 2025 (limited coverage)* .
Near-term catalyst: subsequent debt restructuring where BFH agreed to acquire $3.5M of the HUSA convertible note (post-quarter), plus continued investor outreach (fireside chat) .

What Went Well and What Went Wrong

What Went Well

Strategic site acquisition and build-out: “It provides robust logistical advantages for the transportation of both feedstock and our low-carbon drop-in fuels and chemical products” (CEO) regarding Cedar Port land, underpinning the innovation hub and first plastics-to-fuels plant .
Financing flexibility: “This capital commitment is a significant milestone... It provides us with enhanced flexibility to execute our growth strategy and advance our project pipeline” (CEO) on the $100M ELOC facility .
Project partners mobilized: Appointed Nexus PMG for engineering and Corvus for design-build, accelerating pre-FEED/FEED and ground-breaking for the Abundia Innovation Center and R&D facility .

What Went Wrong

Expense surge and loss expansion: Q3 operating expenses spiked to $7.16M vs. $1.93M in Q2, including $3.342M ELOC commitment-share expense and $0.199M oil & gas impairment, resulting in $(7.03)M net loss .
Balance sheet strain: Cash of $1.51M against total debt ~$11.0M–$11.5M and working capital deficit of $(3.79)M reflects near-term funding pressure until project monetization .
Controls and going concern: Material weaknesses in internal control over financial reporting and substantial doubt about going concern noted, pending remediation and capital access .

Financial Results

Income Snapshot: vs prior year and prior quarter

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD)	$0	$110,557	$225,678
Total Operating Expenses ($USD)	$544,723	$1,933,036	$7,161,087
Net Loss ($USD)	$(264,609)	$(1,794,840)	$(7,031,914)
Diluted EPS ($USD)	$(0.01)	$(1.11)	$(0.21)

Notes: Expense drivers in Q3 included ELOC commitment share expense ($3.342M) and oil & gas impairment ($0.199M) .

Segment Breakdown (Q3 2025)

Segment	Revenue ($USD)	Adjusted Segment Operating Loss ($USD)
Oil & Gas (O&G)	$225,678	$(113,034)
Renewables	$0	$(3,456,958)
Total	$225,678	$(3,343,924)

KPIs and Balance Sheet Indicators (As of Q3 2025)

KPI	Value
Cash and Cash Equivalents	$1,512,157
Goodwill	$12,986,150
Land Asset (Cedar Port)	$8,576,854
Total Debt	$11,010,929
Working Capital Deficit	$(3,789,451)
Shares Outstanding (9/30/25)	34,222,566

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Operating Expenses (Prelim.)	Q3 2025	None	$3.7–$3.9M	Introduced preliminary range
Cash and Cash Equivalents (Prelim.)	As of 9/30/25	None	~$1.5M	New disclosure
Goodwill (Prelim.)	As of 9/30/25	None	~$13.0M	New disclosure
Land Asset (Prelim.)	As of 9/30/25	None	~$8.6M	New disclosure
Total Debt (Prelim.)	As of 9/30/25	None	~$11.5M	New disclosure

Note: No revenue/EPS/margin guidance was provided for Q3 2025 .

Earnings Call Themes & Trends

No Q3 earnings call transcript was available; tracking themes via Q1/Q2 filings and Q3 disclosures.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Project Development (Renewables)	Pre-AGIG; legacy O&G focus and diversification efforts; no renewables revenue	Ground-breaking at Cedar Port; Nexus PMG engaged; design-build partner Corvus; advancing pre-FEED/FEED	Accelerating execution toward first commercial-scale facility
Financing	Multiple registered directs (Q1/Q2) and cash build; post-close, $100M ELOC and $5M note	ELOC commitment shares expensed; net proceeds used for land acquisition; tight cash at Q3 close	Increased financing flexibility but higher near-term cash needs
Corporate Governance & Controls	Material weaknesses noted in Q1/Q2	Continued material weaknesses; change in auditor; board declassification	Governance evolving; controls remediation underway
Supply Chain/Infrastructure	O&G operations; limited mention	Cedar Port logistics advantages (rail/barge; Ship Channel) cited as strategic	Stronger infrastructure posture for feedstock/product flows
Regulatory/Legal	Standard risk disclosures	Forward-looking statements include export controls/tariffs and permitting considerations	Heightened regulatory complexity for renewables build-out

Management Commentary

“This capital commitment is a significant milestone for Houston American Energy and a validation of our long-term vision... provides us with enhanced flexibility to execute our growth strategy and advance our project pipeline.” — Ed Gillespie, CEO, on the $100M ELOC .
“The site at Cedar Port... provides robust logistical advantages for the transportation of both feedstock and our low-carbon drop-in fuels and chemical products.” — Ed Gillespie, CEO, on the land acquisition .
“We look forward to sharing our vision for Abundia and our clear roadmap for growth... building a new leader in the conversion of waste plastics into low-carbon fuels.” — Ed Gillespie, CEO, investor outreach .
“Joining forces with HUSA and entering the public capital markets positions us to accelerate growth, scale our technology and expand our influence within the renewable and recycling industries.” — Ed Gillespie, on AGIG acquisition .

Q&A Highlights

The company did not publish an earnings call transcript for Q3 2025. HUSA hosted an inaugural investor fireside chat on September 17, 2025; no transcript content was available to extract Q&A highlights .
No guidance clarifications were issued beyond preliminary unaudited quarter-end metrics in the 8-K press release .

Estimates Context

S&P Global (Capital IQ) consensus for Q3 2025 EPS and revenue for HUSA was unavailable, reflecting limited analyst coverage. Values retrieved from S&P Global*.
Implication: No beat/miss framing possible this quarter; near-term estimate formation likely hinges on renewables project visibility and financing runway.

Key Takeaways for Investors

Near-term P&L pressure is driven by integration, ELOC commitment-share expense ($3.342M), and oil & gas impairment ($0.199M); expect elevated opex while the renewables platform is built .
Liquidity is tight versus debt obligations (cash $1.51M vs. total debt ~$11.0M–$11.5M; working capital deficit $(3.79)M), making disciplined ELOC usage and additional financing critical to execution .
Strategic infrastructure and partners (Cedar Port’s logistics, Nexus PMG, Corvus) derisk development steps toward pre-FEED/FEED completion and future FID — milestones that can re-rate the narrative .
Governance and controls remediation (material weaknesses, auditor change, board declassification) are necessary to support capital markets access and investor confidence .
Subsequent debt assignment to BFH reduces third-party exposure and may improve refinancing optionality; monitor terms and maturity for the remaining note balance .
With no formal guidance and unavailable Street estimates, watch for tangible project updates (engineering progress, permits, offtake steps) as primary stock catalysts .
Legacy O&G remains modest (Q3 revenue $0.226M); the medium-term thesis hinges on renewables commercialization, capex scaling, and feedstock/offtake execution .

*Values retrieved from S&P Global.

HOUSTON AMERICAN ENERGY CORP (HUSA)·Q3 2025 Earnings Summary